Amadeus Project EL 24704, EL 24870 and EL 24876 GR048 Annual report for the year ending 28 February 2010

Abstract

This report details the exploration activities carried out over Cauldron Energy Ltd. (Cauldron) Amadeus Project in the Northern Territory, during the period 1 March 2009 to 28 February 2010. This work included research, geological interpretation, target generation, field reconnaissance, rehabilitation of drilling and preparation of a Risk Management Plan for WorkSafe NT. A total of 27 drill sites were rehabilitated during the year, with the drill samples returned to the sumps. All sumps were back filled with at least one metre of topsoil cover over the drill samples. All holes were capped and the drill sites scarified to assist rehabilitation. A number of access tracks have been kept open for future drilling programs. During the current reporting period, ending in March 2010, the Company undertook a friendly takeover/merger with fellow uranium explorer, Jackson Minerals Ltd. This process commenced in late December 2008 and was completed at the end of July 2009. As part of this process the newly merged company, headed by its new Chairman Tony Sage, changed its name from Scimitar Resources Ltd. to Cauldron Energy Ltd. The purpose of the merger was to create a larger uranium focused entity, which by its size and the quality of its projects in Australia and Argentina, would be able to attract far greater funding to advance its exploration projects. The Company undertook a capital raising during November 2009. A total of A$10 million has been raised via a placement with Chinese investors. The bulk of these funds are committed to the exploration of Cauldrons projects in the NT, WA, SA and Argentina for the next two years (2010 and 2011). As a result of this extended corporate activity and the resulting shortened field season, the Company was unable to undertake follow up drilling and further field exploration before the end of the reporting period. Field programs including airborne and ground geophysical surveys and RC drilling targeting uranium mineralisation are scheduled to re-commence during the first half of 2010, following the completion of an updated Mining Management Plans.